“When it comes to big oil and gas companies and their stocks, it’s hard to look past the negatives,” Reese says, citing BP’s huge 2010 spill, and political and environmental pressures. “But whether you like it or not, big oil companies are likely here to stay for quite a while. While alternative fuels have made some inroads in the energy sector, oil and gas remain the dominant players. And many of the big oil companies have been dipping their toes in the alternative energy waters in recent years — and they have far more capital to put into those efforts than smaller startups.”

Reese says the fears surrounding oil and gas firms have created some big bargains in the industry. He looks at a handful of picks that his “Guru Strategies”, each of which is based on the approach of a different investing great, are high on right now. Among them: Brazil-based Petroleo Brasileiro SA, which gets high marks from his Peter Lynch- and James O’Shaughnessy-based models.